Magnetic MRO’s newly formed parts trading business has acquired four Boeing 737-800 airframes along with 10 CFM56-7B engines.
Magnetic Parts Trading, a joint venture between the Estonian maintenance provider and U.S.-based investment firm Crestline Investors, announced its first investment on Thursday (Dec. 21).
The MRO said the components JV plans to deliver the first assets from the 737 and CFM56 pool back into the aftermarket from January 2018 where they will be used in a number of different scenarios, according to Tim Veit, Magnetic MRO’s vice president asset trading.
“The acquired portfolio has a mix of value creation scenarios, from immediate part outs, to short-term leases, to building some assets back into the flyers, serving the high demand for 737 800s in the global marketplace,” he said.
Veit added that the acquisition by the parts trading unit was part of a long-term strategy to transition from a labor intensive maintenance provider to a technology, know-how and capital-driven one.
Magnetic Parts Trading was established in July of this year, with an arrangement that will see Crestline provide the majority of capital while Magnetic MRO will oversee management of the investment, part-out and value realization process.
Magnetic MRO also confirmed that more projects are in the pipeline from next year through to 2020.